Hailey Bieber, the model, influencer, and now celebrated beauty entrepreneur, has officially made her mark as one of the most successful female founders in the industry. In a deal valued at up to $1 billion, comprised of $600 million in cash, $200 million in e.l.f. stock, and up to $200 million in additional earnouts based on Rhode’s future performance, e.l.f. Beauty has acquired her skincare brand, Rhode.
Founded in 2022, Rhode quickly established itself as a cult-favourite skincare brand with a minimalist aesthetic, science-backed formulations, and a powerful social media strategy. But this is far more than just another celebrity-backed brand. Hailey Bieber’s personal involvement, sharp branding instincts, and modern approach to beauty helped Rhode evolve from a buzzworthy startup to a billion-dollar powerhouse. Now, with e.l.f. Beauty brings it under its wing, Rhode stands poised to scale even further, and the implications go well beyond one company.
With Rhode now part of e.l.f. Beauty’s growing empire, the brand is well-positioned to expand globally, innovate further, and reach new audiences. A major catalyst for this acquisition is Rhode’s first-ever retail partnership with Sephora, which will launch across North America and the U.K. by year’s end—a pivotal shift from its digital-only exclusivity. But perhaps its biggest contribution is the precedent it sets.
Inside the deal: e.l.f. Beauty’s $1B bet
The acquisition by e.l.f. Beauty, known for its disruptive approach and digital-first growth, marks the largest in its history and one of the most significant celebrity-founded brand exits in recent years. In a statement, e.l.f. CEO Tarang Amin called Rhode “the most exciting skincare brand in the world,” noting its magnetic brand equity, viral product performance, and high-margin business model.
The move aligns with e.l.f.’s mission to expand its footprint in the premium skincare category, a sector growing rapidly amid increasing consumer interest in clinical-grade, influencer-endorsed beauty. According to industry analysts, the deal strengthens e.l.f.’s position and signals a broader shift: large public beauty companies are willing to place billion-dollar bets on digitally native, founder-led brands with strong community engagement.
Rhode’s recent financial performance is remarkable—the brand generated $212 million in revenue in the 12 months ended March 31, 2025, more than doubling its customer base over the past year. Hailey Bieber will remain involved with the brand post-acquisition, likely ensuring that Rhode’s voice and vision continue to reflect her original ethos.
Specifically, Hailey will serve as Chief Creative Officer and Head of Innovation, maintaining operational control over the brand’s creative direction, product development, and marketing strategy, while also acting as a strategic advisor to e.l.f. Beauty. While financial details about her personal earnings weren’t disclosed, reports estimate that she now joins the elite ranks of self-made female billionaires, a feat few in the celebrity or startup world have achieved.
Hailey Bieber: Model, mogul, and mission-driven founder
While she may have first captured headlines as a model and the wife of pop icon Justin Bieber, Hailey Bieber’s journey to becoming a billionaire beauty founder was fueled by much more than name recognition. Before Rhode, she had already carved out her space in fashion, modelling for top brands like Tommy Hilfiger, Ralph Lauren, and Guess. She also made a name for herself as a digital tastemaker, curating aesthetics and trends that resonated deeply with Gen Z audiences.
This innate understanding of branding, combined with a genuine passion for skincare, led her to launch Rhode in 2022. Named after her middle name, Rhode was built on simplicity, barrier-repairing ingredients, and affordable luxury. From the start, Hailey was hands-on, overseeing product development, marketing, and even creative direction. Her authenticity resonated with consumers, who were increasingly sceptical of celebrity lines that lacked substance.
Rhode’s signature Peptide Lip Treatment became a viral sensation, selling out repeatedly and garnering waitlists of over 300,000 customers. Last year, the brand became the leading skincare brand in earned media value, showcasing a remarkable 367% growth year-over-year through non-paid advertising methods.
By the time the acquisition was announced in May 2025, Rhode was reportedly on track to generate $100 million in revenue this year alone, with consistent profitability and a loyal, engaged consumer base. In fact, the brand’s actual revenue was even higher, at $212 million in the 12 months ending March 2025. Bieber didn’t just lend her face to the brand; she also shaped its DNA.
A notable subplot is the personal financial contrast within the Bieber household: while Hailey achieves billionaire status, reports suggest Justin Bieber faces financial challenges from his cancelled 2022 “Justice” tour, with sources claiming Hailey is “100 per cent the breadwinner now.”
Rhode’s preparation for this acquisition included appointing Nick Vlahos as CEO in February 2024. Vlahos previously led The Honest Company through its $1.44 billion IPO, bringing crucial scaling experience that likely enhanced Rhode’s acquisition appeal and valuation.
A paradigm shift in the beauty industry
The Rhode acquisition isn’t just another big-ticket buyout. It reflects a transformation in how beauty brands are being built, scaled, and valued. For decades, the industry was dominated by legacy conglomerates, high-budget ad campaigns, and traditional retail models. But founders like Hailey Bieber are rewriting that playbook.
They are leveraging personal brand equity, social platforms, and community-led content to launch products that feel personal, effective, and culturally relevant. They’re using digital channels to collapse the feedback loop, taking customer insights directly into formulation, design, and messaging. Most importantly, they’re proving that authenticity can scale.
Rhode’s success also underscores the growing influence of female entrepreneurs in the beauty tech space. While celebrity-backed brands are nothing new, few, such as Rihanna’s Fenty to Selena Gomez’s Rare Beauty, have achieved both commercial scale and critical acclaim. Bieber’s ability to blend influence with substance sets a new benchmark for aspiring founders.
Rhode’s masterful positioning as the embodiment of the “clean girl” aesthetic—a trend Hailey helped mainstream that emphasises simplicity as sophistication: slicked-back buns, dewy skin, and neutral-toned wardrobes—has had a major cultural impact. It’s worth noting, however, that this aesthetic has roots in Black, Hispanic, and South Asian beauty practices that Hailey helped bring to the mainstream under a Eurocentric lens.
As for what this means for the industry? Expect more strategic acquisitions of digitally native brands, increased investment in founder-led ventures, and a continued blurring of the lines between creator and CEO. Consumers are no longer just buying skincare. They’re buying into a vision, a lifestyle, and a founder’s story.
With e.l.f. products typically retailing around $6.50 and Rhode’s averaging in the high $20s, the acquisition allows e.l.f. to access more affluent consumer demographics while maintaining its engaging brand approach. The earnout structure suggests significant growth expectations, and with Rhode’s current trajectory and e.l.f.’s distribution capabilities, analysts anticipate the brand could easily achieve the performance metrics needed to unlock the full $200 million additional payout.
